India’s third most leading Telecom service partner company VI is with outstanding dues of practically Rs 1.6 lakh crore in spectrum funds and AGR dues. The authorities may be the biggest sufferer if Vodafone Idea crumples beneath crippling damages and troublesome debt.
The blow for the authorities does not desist right here. Suppose one provides the excellent Rs 23,000 crore owed to the banks. In that case, the outcome might be one of the most consequential in the company historical past as a big half of the loans (65-70%) is lengthened by state-run lenders. The banks have additionally lengthened to ensure value 1000’s of crores to the firm, which also runs the threat of defaults.
“The telecom department and the national exchequer would lose the most in case of a collapse of Vodafone Idea. The picture looks grim considering the poor recoveries and unrealised outstanding after the collapse of Anil Ambani’s Reliance Communications and Aircel, where too several thousands of crores of rupees remain locked. Taxpayers stand to lose the most,” an analyst with a number one brokerage instructed TOI.
Cumulatively, the firm currently has a debt of Rs 1.8 lakh crore and has been draining financially, with losses clinched at Rs 7,000 crore throughout the March quarter. The debt tops Rs 1.8 lakh crore, following ICICI Securities. “We see a payment of liabilities coming soon, while fund availability remains a challenge,” it stated.
According to numbers sourced from copious analysts and Vodafone Idea’s monetary outcomes, at Rs 107, the firm stays precariously positioned with the lowest ordinary income per person (Arpu) amongst its friends. Reliance Jio reported Arpu of Rs 138 and Bharti Airtel at Rs 145. However, the latter has repeatedly stated that a minimum of Rs 200 Arpu is claimed to aid the capital-intensive sector to well-being. Vodafone Idea’s poor forecast was apparent after the SoS calls given by its promoters, who have declined to make any additional investments into the firm, and are asking the authorities to sustain its survival. Goldman Sachs asserted that it expects Capex for Vodafone Idea to stay underneath strain, “resulting in continued market share loss”. It stated that between December this yr and April of 2022, the firm has about Rs 22,500 crore of dues (debt, AGR and spectrum) payable.